For the first time in four years, the state of Iowa submitted its Annual Comprehensive Financial Report and its Single Audit for the previous fiscal year without months of delays. The Iowa Department of Administrative Services released the comprehensive financial report covering fiscal year 2023 (July 2022 through June 2023) in late December, and the State Auditor’s office published the Single Audit on March 29.

The Annual Comprehensive Financial Report typically comes out within six months of the end of a fiscal year. But Iowa State University’s switch to the Workday system for accounting in fiscal year 2020 created enormous difficulty in compiling accurate financial data. As a result, the state’s comprehensive report for FY2020 came out nine months behind schedule.

For the next two years, turnover within the Department of Administrative Services delayed work on the comprehensive report, which came out more than seven months late for FY2021 and eight months late for FY2022.

The Single Audit is a mandatory report covering federal dollars spent by state agencies and universities. It typically comes out in late March but can’t be issued before the comprehensive report is complete. So beginning in FY2020, Iowa’s Single Audit was months late for three years in a row.

State legislators escort Governor Kim Reynolds into the Iowa House chamber on January 9, 2024. Photo by Zach Boyden-Holmes/The Des Moines Register (pool).

Governor Kim Reynolds had every reason to be confident about her legislative plans this year. Republican lawmakers approved most of her priorities in 2023, including some that had previously stalled in the Iowa House, such as a “school choice” plan and damage caps for medical malpractice awards.

Ten weeks into the 2024 legislative session, only two policies the governor requested have made it through both chambers. Nearly a dozen other bills still have a chance to reach her desk with few changes.

But Reynolds’ top priority—downgrading the Area Education Agencies (AEAs) and centralizing power over special education in her administration—will be dramatically scaled back, if it passes at all.

Three bills the governor introduced and promoted in public remarks or on social media are almost certainly dead for the year. Those include her effort to enshrine “separate but equal” treatment of LGBTQ Iowans.

Leaders moved several of Reynolds’ bills to the “unfinished business” calendar in one or both chambers on March 14, keeping them eligible for floor debate despite missing an important legislative deadline. The rest of the governor’s proposals involve taxes or spending, and are therefore “funnel-proof.”

Tom Walton chairs the Dallas County Democrats.

In 2018, Governor Kim Reynolds made “Future Ready Iowa” her trademark program designed to improve Iowa’s workforce, setting a goal to increase the number of Iowans who had attained a post-secondary education to 70 percent of the workforce by 2025.

Reynolds announced in last month’s Condition of the State address, “I’m happy to say that we’ve reached our ambitious goal, and we did it ahead of schedule.” Future Ready Iowa’s website likewise asserts, “we are now proud to report that we have met that goal as a state.”

Two years ahead of schedule sounds like a huge public policy accomplishment, right? Not so fast. On closer examination, Reynolds and her team fudged the numbers.

The Iowa House and Senate approved similar bills on March 23 that would substantially cut unemployment benefits for jobless Iowans. The legislation, a priority for Governor Kim Reynolds, had been stalled for weeks, raising questions about whether Republican leaders could find the votes to pass it in the House.

Both versions of the legislation include the centerpiece of the proposal Reynolds highlighted during her Condition of the State address in January: reduce the maximum unemployment benefits in one year from 26 weeks to sixteen weeks. Currently, most states provide up to 26 weeks of unemployment benefits per year, while only a handful of states provide a maximum of sixteen weeks or fewer.

The revised bill, House File 2355, also includes provisions that would force Iowans to accept new jobs for lower pay sooner, and would make it easier for Iowans to be denied benefits entirely.

A House amendment offered by State Representative Mike Bousselot removed language that would have denied Iowans benefits the first week they were unemployed. Senate Republicans put the one-week waiting period back in the bill before approving it.

All House and Senate Democrats voted against the bills, as did two Republicans in each chamber: State Representatives Martin Graber and Charlie McClintock, and State Senators Zach Nunn and Jeff Reichman.

“We want to get Iowans back to work!” Governor Kim Reynolds tweeted on October 20, touting a new business grant program financed through the American Rescue Plan, which she used to denounce as a “blue state bailout.”

But there was more: “We also announced a new reemployment case management system to refocus Iowa’s unemployment system and ensure Iowans can get back to work as quickly as possible.”

That’s a creative way of saying Reynolds plans to push more Iowans into available jobs by making it harder for them to collect unemployment benefits. However, the policy changes the governor announced at her latest news conference won’t address several important reasons many Iowans remain out of the workforce.

Charlie Wishman is president of the Iowa Federation of Labor AFL-CIO. -promoted by Laura Belin

The COVID-19 pandemic has been not only a public health disaster, but also an economic disaster. Many Iowans have experienced filing for unemployment for the first time this past year. As a result, many now realize just how important this lifeline can be for working people and their families. 

You can tell a lot about what kind of legislature we collectively elected by looking at how lawmakers respond to the economic disaster that is COVID-19. Right now, the Republican-controlled Iowa House and Senate are moving a bill forward that would reduce unemployment benefits, inexplicably, during a global pandemic. 

Are we as a state going to continue to allow the rich to stuff their pockets during this pandemic while families suffer? Or worse, will we actively encourage it? Unfortunately, that is exactly what is happening now.

The scale of the economic collapse caused by the novel coronavirus (COVID-19) pandemic is beginning to come into view. The national economy may contract by 40 percent in the second quarter, with unemployment reaching 20 percent. One nationwide survey published this week indicated that 33 percent of voters–including 52 percent of respondents under age 45–have either lost their job, had work hours reduced, or been furloughed.

Iowa’s latest unemployment figures show yet another record number of new claims.

You don’t hear this every day: in an Iowa House speech on March 21, Democratic State Representative Kirsten Running-Marquardt repeatedly thanked GOP colleagues for their work on a bill she opposed. House File 531 changed some aspects of our state’s unemployment insurance and benefits system. The first draft was much worse than the legislation House Republicans approved on a party-line vote this week.

The bill’s floor manager, State Representative Gary Worthan, warned that next year, lawmakers may return to a idea jettisoned following intense opposition from Democrats and labor groups.

Governor Kim Reynolds appointed former Iowa House Speaker Kraig Paulsen as director of the Iowa Department of Revenue on February 22, only six weeks after she had named Adam Humes to lead the agency. A late Friday afternoon news release did not explain the reason for the change, saying only that Humes “has decided to pursue other opportunities.”* Paulsen will start work this coming Monday. Leadership transitions at state agencies typically are weeks or months in the making.

Humes’ predecessor, Courtney Kay-Decker, also left under odd circumstances. Appointed by Governor Terry Branstad in 2011, she sounded excited to continue to lead the department after the 2018 election. But in early December, Kay-Decker announced her resignation, effective at the start of the new year.

Iowa Workforce Development Director Beth Townsend instructed all her agency’s employees today “to be mindful of state and federal guidelines regarding prohibitions of participation in political activities while on state time or using state assets.”

The action followed Bleeding Heartland’s inquiry about a September 29 e-mail from an operations manager to more than 60 Iowa Workforce Development colleagues, recruiting volunteers for the Kim Reynolds/Adam Gregg campaign under the subject heading, “A Message from Governor Reynolds’ Office.”

State law prohibits using “public moneys for political purposes.” Administrative rules written to implement that portion of the Iowa Code forbid public employees from using public resources “to expressly advocate the nomination, election, or defeat of a candidate,” or “to solicit votes, engage in campaign work.”

Iowa workers lost again at the statehouse on Thursday, as 55 House Republicans approved a bill that would tilt the workers’ compensation system markedly toward employers. All 37 Democrats present voted against House File 518, joined by just one Republican, State Representative Rob Taylor. UPDATE: GOP Representative Clel Baudler was absent on March 16 but filed an “explanation of vote” in the House Journal on March 20 clarifying that he would have voted “nay” on this bill.

Lawmakers had received an enormous number of constituent contacts since the “dramatic” and “far-reaching” legislation first saw the light of day a little more than two weeks ago. In a rush to get this unpleasantness behind them before the weekend, GOP legislators insisted on a final vote before staff could analyze the cost of a “new career vocational training and education program,” conjured up in an amendment filed the previous evening.

Another helpful reality check by Iowa State University economist Dave Swenson. Find his previous writing for this site here. -promoted by desmoinesdem

It is vexing to hear assertions of a skills gap in Iowa, or nationwide for that matter, when people are really complaining they can’t find workers to do what they want them to do for the wages they are willing to pay. That is not a skills gap.

Neither the inability of a grain elevator in rural Iowa to find grain handling help nor a manufacturer in Clinton to find computer-controlled machine tool operators or programmers are skills gaps. They may be regionally-specific skilled labor shortages, as is the case in much of rural Iowa because of persistent outmigration, they may be workforce indifference to those job opportunities, but they are not skills gaps.

A former administrative law judge who testified about political interference at Iowa Workforce Development is facing a felony fraud charge after staff in the Polk County Attorney’s office failed to do their homework.

Ryan Foley reported Thursday for the Associated Press that former Administrative Law Judge Susan Ackerman is charged with making fraudulent submissions, having “falsely certified that her married daughter was single so that she could receive state health insurance in 2013 and 2014.” When the Iowa Supreme Court Attorney Disciplinary Board reviewed an Iowa Workforce Development complaint citing the same conduct a year and a half ago, the board determined “that Ackerman didn’t commit an ethical violation and declined to take action against her law license,” Foley noted.

So why is she facing criminal prosecution now? Because no one in the Polk County Attorney’s office researched this case before filing charges.

The Iowa Supreme Court ruled unanimously today that Governor Terry Branstad impermissibly used his line-item veto to strike language about Iowa Workforce Development field offices without vetoing the money allocated to fund those offices.

UPDATE: Added Branstad’s reaction below as well as statements from Iowa House and Senate Democrats.

NOTE: A third Democrat, Nick Volk, filed nominating papers in this district on March 15.

Shelley Parbs announced today that she will run for Iowa Senate district 38. She is the second declared Democratic candidate in this district; the winner of the June primary will face first-term Republican Tim Kapucian, a Senate minority leader and ranking member of the Transportation Committee. Background on Parbs is after the jump, along with election-related developments in the two Iowa House seats that make up Senate district 38.

The Iowa Supreme Court held an unusual evening session on February 21 to hear oral arguments in Governor Terry Branstad’s appeal of a district court ruling that declared two of his line-item vetoes illegal.

MARCH 16 UPDATE: Rasmussen did not file for re-election. The Republican candidate in this district is Jim Givant; Bleeding Heartland will cover his campaign in a future post.

Iowa’s new map of political boundaries created a large number of competitive House and Senate districts in the northeast part of the state. Yesterday Democrat Bruce Bearinger announced his candidacy in the new House district 64, now represented by Republican Dan Rasmussen. A district map and background on both candidates are after the jump.

Polk County District Court Judge Brad McCall has upheld a legal challenge to Governor Terry Branstad’s veto of language intended to keep Iowa Workforce Development offices open across the state. Excerpts from the court ruling and background on the controversy are after the jump.

The state agency Iowa Workforce Development has replaced 36 field offices with hundreds of new “enhanced access” computer terminals this year.

Although the shuttered offices are unlikely ever to reopen, they may live on as talking points in many competitive Iowa House and Senate races next fall.

Iowa Workforce Development officials can move ahead with closing 37 36 of the agency’s 55 field offices around Iowa, thanks to a line-item veto by Governor Terry Branstad. State lawmakers included language in the economic development appropriations bill to require Iowa Workforce Development to maintain its current number of field offices through the 2012 fiscal year. However, Branstad rejected that provision yesterday:

“This item would prohibit Iowa Workforce Development from putting forth an enhanced delivery system that broadens access to Iowans across the state in fiscal year 2012,” Branstad said. “In order to develop a sustainable delivery system in light of continually fluctuating federal funding, the department must put forth a system that embraces the use of technology while providing enhanced benefits through maximum efficiencies.”

Branstad said Iowa Workforce Development has more than 190 “virtual access point workstations” in over 60 new locations throughout the state to increase access to these critica services. He says Iowans are already using the expanded hours of operation, six days a week.

“At my direction, IWD will have hundreds of additional virtual access points by the end of fiscal year 2012,” he said.

I doubt many unemployed Iowans would consider a computer terminal “enhanced” access, compared to an office staffed by a real person explaining the available services.

Controversy over shutting down these offices nearly derailed the Iowa Senate confirmation of Teresa Wahlert. Opposition from lawmakers of both parties didn’t persuade her, although two of the 39 field offices originally targeted will be spared. Iowa Workforce Development started closing some of its field offices even before legislators had adopted a final budget. In early July, the agency laid off 13 employees as part of the planned reorganization. Iowa Workforce Development Communications Coordinator Katie Hommer communications director was unable to tell me today when the agency will finish shutting down the offices slated for closure. She said staff are still going through the signed budget, which they only just received.

Hommer also did not know whether enough funds were provided for the agency to keep open its New Iowan Centers, which offer specialized services for recent immigrants. Those centers are currently located in Muscatine, Ottumwa, Marshalltown, Mt. Pleasant, Iowa City, Des Moines, Sioux City, Storm Lake, Council Bluffs, Mason City and Denison.

On a related note, Branstad’s love for streamlining government doesn’t extend to the U.S. Postal Service, which may close as many as 178 Iowa post offices. The downsizing is part of a plan to eliminate 3,700 of nearly 32,000 post offices nationwide. Branstad has repeatedly criticized plans to eliminate rural Iowa post offices, and yesterday he told Radio Iowa that the postal service is not using “common sense.” He wants the independent federal agency to explore alternatives to closing offices that small-town residents rely on.

Conservatives talk a good game about running government like a business, but a private business with declining revenues could never afford to operate retail outlets in as many locations as the U.S. Postal Service. The independent agency gets almost all of its revenues from postal fees (not federal budget allocations). As Americans send fewer paper letters and documents, postal service revenues have declined.

Branstad and his wife own 12 Iowa buildings that are leased to the U.S. Postal Service. So far only one of those, in Lohrville, is on the list of post offices to be closed.

UPDATE: Iowa House and Senate Democrats will reach out to Republicans to convene a special legislative session “with the sole purpose of overriding Governor Branstad’s line-item vetoes of legislation prohibiting the closure of the [Iowa Workforce Development] offices.” Details are in a press release I’ve posted after the jump. That document lists all the towns that would lose Iowa Workforce Development offices, as well as the county unemployment rate in each area.

SECOND UPDATE: Sounds like Republicans are not game for a special session to deal with this narrow issue. I’ve added Iowa Senate Minority Leader Paul McKinley’s statement below.

THIRD UPDATE: Only 36 field offices will be closed, because federal funding came through to keep the Webster City office open. The closure of the Electrolux factory has been a particular hardship for Iowans in the local area. After the jump I’ve posted an Iowa Workforce Development press release, which lists all the cities and towns that will have the “regional integrated one-stop offices,” as well as all the localities that will lose their field offices.

Meanwhile, Iowa House and Senate Democrats formally called for a special session on July 29. Republicans are not interested. Expect these office closures to become a campaign issue in a bunch of statehouse races next year. The Golden Dome Blog found a video of Lieutenant Governor Kim Reynolds praising a “phenomenal” and “user friendly” workforce development office during last year’s gubernatorial campaign.

Democratic State Representative Dave Jacoby serves on the Iowa Workforce Development Board and is angry that board didn’t get to weigh in on whether these field offices should be closed.

The parent company of the firm that allegedly exploited mentally disabled workers in Iowa claims not to be subject to our state’s labor laws, the Des Moines Register’s Clark Kauffman reported today.

In May, Iowa Workforce Development fined Henry’s Turkey Service $900,000 for 9,000 violations connected to men who worked at a plant in West Liberty. They received pitiful wages after fees were deducted for housing, food and other expenses.

But the parent company of Henry’s Turkey Service sees things differently:

An attorney for Hill Country Farms said in a written response that the company “is organized, operated and controlled according to the laws and regulations of the State of Texas” and is not subject to the Iowa laws it’s accused of violating.

The company maintains that all of the Iowa workers who lived for decades in a bunkhouse in Atalissa, near the West Liberty plant, were technically residents of Texas and that their real employer was West Liberty Foods, not Hill Country Farms.

State and corporate records support some elements of that argument but undercut other aspects of the company’s case.

For example, some of the Atalissa men were enrolled in Texas Medicaid – a program that in theory is open only to residents of Texas. But the W-2 tax forms in which the men’s wages were reported to the Internal Revenue Service indicate that Hill Country Farms, not West Liberty Foods, was the employer.

Kauffman writes that “it could be a year” before an administrative law judge rules on this case. I’m not an attorney, but I would hope Hill Country Farms is not able to get away with claiming men in Atalissa, Iowa, as Texas residents.

Staff at Iowa Workforce Development and the state legislature should look for ways to close any loopholes companies may be using to evade our labor standards.

Click here for the archive of Des Moines Register reports on Henry’s Turkey Service and the men it housed in Atalissa.

Iowa Workforce Development is fining Henry’s Turkey Service $900,000 for labor law violations, the Des Moines Register reported on May 29. The fine stems from 9,000 counts of making improper deductions from paychecks, not paying the minimum wage, and not providing pay stubs to the mentally disabled workers who lived in a decrepit bunkhouse in Atalissa. (The violations affected at least 30 workers during every pay period in 2007 and 2008.)

Since various agencies are conducting other investigations into the company’s treatment of its workers, I expect this fine will be the first of many levied against Henry’s Turkey Service. However, an attorney for the parent company of Henry’s Turkey Service told the Des Moines Register that the company will challenge Iowa Workforce Development’s proposal. It will be some time before any fines are paid.

Click here for the archive of Des Moines Register reports on this appalling story.